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Representatives from the company are in Edinburgh today meeting with delegations from the two potential sites.

The specialist rolling stock company designs, manufactures and services fast lightweight trains for 28 national markets including Spain, Germany, Saudi Arabia and the US.

Talgo is the rolling stock provider for the Haramain high speed railway line between La Mecca and Medina in Saudi Arabia and provider of the new AVRIL train to Spanish operator RENFE.

It now aims to enter the UK market through 'true manufacturing' rather than assembling kits of parts from overseas.

The company said that the shortlist is the latest phase in a search that has lasted 18 months, crossed much of Britain and has seen detailed discussions with land owners, development agencies, local councils, research establishments, schools, colleges and universities.

It said that all the shortlisted locations “share great connectivity” and would benefit from major job creation and have the potential to supply “people that can be skilled-up to meet the needs of building trains that can run at up to 235mph.”

Talgo said it intends not only to build for the UK market, but also to serve emerging overseas markets, boosting UK exports.

Carlos de Palacio, president of Talgo and grandson of the company's founder, has done a number of the fact finding missions for the site himself.

He said: “The establishment of a manufacturing facility in the UK is a significant part of Talgo’s future strategy.

“Talgo’s aim is to establish true manufacturing – rather than assembling from parts made elsewhere. This means that we will draw from materials and expertise across the UK.

“This keeps more money in the UK economy, and creates more skilled long-term jobs.

“Although there can only be one factory site, we have developed excellent relationships with areas that we have visited. We anticipate continuing these relationships to ensure that Talgo provides opportunity across the UK.”